Today’s post by Aleksandar Mitrovic and Riaan Grobler summarises the distribution of property prices and rents by suburb in Gauteng and the Western Cape. The lines represent the gross rental yield (gross rent-to-price ratios), representing the annual return that would be generated from rental income relative to the assumed price of properties in that area before including costs or taxes. For houses, for example, a larger proportion of properties available in Gauteng would imply rental yields of around 8% or more than in Cape Town. Based on current pricing, Gauteng rental yields also tend to be higher on average for apartments, since properties are cheaper on average, while rents in low property price suburbs tend to be higher relative to prices than in the Western Cape.
